IMF, World Bank, G20 Countries to Create Central Bank Digital Currency Rules

International financial authorities and 20 of the world's largest economies set official standards for regulating and issuing government digital currencies.
The Group of Twenty (G20) - an organization of finance ministers and central bank governors representing the European Union and 19 countries on every continent - said in a report today that it is working with the International Monetary Fund (IMF), the World Bank and the Bank for International Settlements (BIS) to formalize the use of central bank digital currencies (CBDC) in banking systems.
According to the report, G20 members, the IMF, the World Bank and the BIS will have completed the regulatory framework for stable coins and the research and selection of CBDC designs, technologies and experiments by the end of 2022.
See also: BOJ's Kuroda Says Central Bank Will Start CBDC Experiments In Spring: Report
Stable coins are digital currencies that are often associated with physical currencies such as the US dollar. The IMF and World Bank will have the technical capabilities to facilitate CBDC transactions between countries by the end of 2025, the report said.
Countries will “examine the scope for new multilateral platforms, global stable coin arrangements and central bank digital currencies to address the challenges faced by cross-border payments without compromising the minimum standards of supervision and regulation to control the risks to the currency - And enter into financial stability, "said the G20 The Financial Stability Board (FSB), a body formed after the 2008 financial crisis, said.
Multinational alliances
The G20 roadmap on stablecoins follows a joint report published last week by seven central banks through the BIS to outline a transnational front for nationalized digital currencies.
Last week's report, authored by the Federal Reserve, Bank of Canada, European Central Bank (ECB), Bank of England (BOE), Swiss National Bank, Swedish Sveriges Riksbank and Bank of Japan (BOJ). outlined characteristics that central banks would require of CBDCs in their countries.
Related Topics: Federal Reserve, 6 Other Central Banks Establish Key Principles For Digital Currency
North American, European, and Japanese banks said CBDCs would need to be interchangeable with existing forms of money and be similar to cash in ease of use in a variety of payment methods with no or low cost.
CBDC systems should also connect to older financial technologies, process large volumes of transactions immediately around the clock, be impervious to cyberattacks and failures, and comply with regulations and monitoring that apply to money already in circulation and retain central bank power, it says in the report.
CBDCs could improve cross-border payments, resemble corporate digital currencies like Facebook Libra, and send emergency money payments to consumers during the coronavirus pandemic, the report said. But CBDCs would not be anonymous and self-sufficient, the report said, which differs from the virtual currencies whose distributed ledger technology they would borrow.
Bitcoin transactions are carried out on a blockchain network that masks and ensiles personal data from central actors, while central banks ensure access and transparency to CBDC payments and identities.
The ECB and BOJ also announced this month that they are considering issuing CBDCs. An ECB report says that a decision to issue a digital euro will be announced in April next year. According to BOJ officials, the experiments with digital yen will begin in the spring and call for a concerted effort to match China's digital yuan, the central bank's most expansive digital currency to date.
CORRECTION (October 13, 2020, 01:50 UTC): Changes to G20 by G7 throughout.
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IMF, World Bank, G20 countries create rules for the central bank's digital currency
IMF, World Bank, G20 countries create rules for the central bank's digital currency

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